Belgian Budget Breakthrough: Coalition Reaches Agreement Amid Strikes

The Belgian government has reached a budget agreement after long negotiations. Prime Minister Bart De Wever's coalition devised a plan involving tax hikes and spending cuts to reduce the deficit by 9.2 billion euros by 2029. This comes as a national strike protesting pension reforms begins.

After intense negotiations, the Belgian government reached a pivotal budget agreement, announced Prime Minister Bart De Wever. The coalition, facing a deadline set for Christmas, resolved its differences through extensive discussions.

The hard-fought deal introduces tax increases on share purchases, airplane tickets, and natural gas, along with a fresh levy on banks. These measures, paired with cuts in government expenditures, aim to reduce Belgium's deficit by 9.2 billion euros by 2029, financial daily De Tijd reported. Despite these efforts, the country faces a three-day national strike over pension reforms.

The strike threatens to paralyze transport, with Brussels airport halting flights and train services heavily affected. Despite projections of a budget deficit reaching 4.5% of GDP and debt exceeding EU limits, the government remains committed to financial rectification.

(With inputs from agencies.)